December 14, 2021 10:30 a.m.
Newmark announces the completion of the sale and financing of Nexus East, a newly constructed 352-unit luxury apartment building in Austin, Texas. The seller was a partnership between Ardent Residential – an Austin-based real estate development company specializing in apartment buildings – and DDelta Development, based in Monterrey, Mexico. The buyer was a subsidiary of Treeline Multifamily Partners Ltd. (“Treeline”), a private real estate asset management company.
Vice Chairman of Newmark Patton Jones and managing director Andrew Dickson represented the seller in the transaction. Newmark Executive Managing Director Timothy Weldon helped the firm’s Debt and Structured Finance group secure acquisition financing on behalf of the buyer. Newmark’s Central Texas Multifamily Group was also involved in raising equity for the site in 2019.
“Investors have been fascinated by the Nexus East’s location in the heart of East Austin, surrounded by some of the best recreational amenities and restaurants in town,” said Jones. âThe nearly 3.5 million square feet of office space recently delivered, under construction, or proposed further enhanced the investment opportunity as buyers saw the Nexus East in the midst of an evolving living / working / play environment excellent addition to Treeline’s rapidly growing portfolio in central Texas. ”
“The teamwork and dedication of Treeline and Apollo Global Management affiliates resulted in an extremely efficient transaction,” said Weldon. “We were able to deliver favorable terms and a quick deal.”
The Nexus East, which was delivered in 2021, offers a mix of studio and one- and two-bedroom units and was 90% let at the time of sale. The interiors have high ceilings, vinyl hardwood floors, gourmet kitchens, and smart home packages. The property amenities include a resort-style pool, a rooftop terrace with an entertainment kitchen, a modern clubhouse, a spacious co-working space, a fitness area, bicycle storage rooms, a putting green and a large dog park, as well as a washing area for pets.
The hotel is located on 720 Airport Boulevard – at the confluence of Airport Boulevard, Highway 183 and East Seventh Street – Nexus East, just eight minutes from Austin’s CBD and five minutes from Austin-Bergstrom International Airport (ABIA). Additionally, the property is minutes from Tesla’s $ 1.1 billion automotive manufacturing facility, which is currently under construction.
According to Newmark Research, 268,331 apartment buildings were absorbed nationwide in the third quarter of 2021, which is the highest quarterly absorption rate in history. As employees return to the office and the cost of owning single-family homes continues to rise, demand for rental apartments is expected to increase, which will support strong rental growth through the end of 2022. Austin was ranked sixth among the major US metropolises year-on-year – effective rental growth for the year – with rents rising by 18.1% – for the 12 months ending in the third quarter of 2021.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a global leader in commercial real estate, seamlessly supporting every phase of the real estate lifecycle. Newmark’s comprehensive range of services and products is individually tailored to each customer, from owner to user, from investors to founders and start-ups to blue-chip companies. By combining the platform’s global reach with market intelligence in both established and emerging real estate markets, Newmark provides outstanding service to its customers across all industries. Newmark had sales of more than $ 2.5 billion for the twelve months ended September 30, 2021. Newmark’s corporate offices work with its business partners from over 160 offices with approximately 6,200 employees around the world. To learn more, visit nmk.com or follow @newmark.
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